Sunday, January 29, 2023

Google’s dominance in online advertising in Australia is detrimental to businesses.

Google’s dominance of Australia’s online advertising industry has harmed publishers, advertisers, and ultimately consumers, according to the country’s antitrust regulator, who has called for new measures to reign in the Big Tech behemoth.

In 2020, more than 90% of clicks on advertising exchanged through the Australian “ad tech” supply chain traveled through at least one service controlled by Alphabet Inc (GOOGL.O), according to a study released on Tuesday by the Australian Competition and Consumer Commission (ACCC).

“Google has used its vertically integrated position to operate its ad tech services in a way that has, over time, led to a less competitive ad tech industry,” ACCC Chair Rod Sims said in a statement, released alongside the report.

“This conduct has helped Google to establish and entrench its dominant position in the ad tech supply chain. We recommend rules be considered to manage conflicts of interest, prevent anti-competitive self-preferencing, and ensure rival ad tech providers can compete on their merits.”

A Google official could not be reached for comment right away. Google claimed in a blog post published shortly before the ACCC findings that its advertising technology-supported over 15,000 Australian employment and generated $2.45 billion to the economy each year.

The ACCC stated that the US firm benefited from huge volumes of internet user data obtained through its search engine, mapping, and YouTube video streaming services and that it must be more transparent about how it uses this data to sell adverts.

The regulator stated that it wants unique authorities to manage advertiser access to consumer data, such as laws requiring them to split data between business divisions or share data with competitors.

The “ad tech” report was part of the ACCC’s larger investigation into online platforms, which prompted Google to announce earlier this year that it may pull key services from the country due to regulations requiring it to pay for media material that drives visitors to its website.

Google has now signed content payment agreements with the majority of Australia’s main media outlets, as has Facebook Inc (FB.O), which suspended news feeds in the country for a week in the days leading up to the law’s passage. find out more

The government will study the report’s conclusions and recommendations, according to Treasurer Josh Frydenberg, who commissioned it.

 

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